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Average salary increases of 2.6 per cent in 2015: Hay Group

Alberta, Saskatchewan lead the way

08/26/2014|hrreporter.com|Last Updated: 08/26/2014

Canadian employees can expect to see average base salary increases of 2.6 per cent in 2015, according to a survey of more than 400 Canadian public and private sector employers by Hay Group in June and July.

The 2.6 per cent projected increase is the same as that in 2014, and lower than the 2.9 per cent projection for 2013. Canadian projections have now fallen further behind the United States where American workers can expect an average increase of three per cent in 2015, up from 2.8 per cent projected for 2014.

Eight-three per cent of Canadian employers will provide employees with base salary increases in 2015, found Hay Group

The highest increases continue to be seen in the oil and gas sector, at 3.8 per cent, where demand for key skills continues to outweigh the strategic supply challenges that persist in the industry, said Hay Group. Chemicals (3.3 per cent), credit unions (3.2 per cent) and financial services (three per cent) are all sectors with forecasts considerably higher than the national average of 2.6 per cent..

Alberta (3.1 per cent) and Saskatchewan (2.9 per cent) will lead the country with projected overall base salary increases, found the survey. All other provinces are predicting increases of 2.1 to 2.6 per cent, which are at or below the national average.

Province

2015projection

2014projection

2013projection

2012projection

2011projection

B.C.

2.6 per cent

2.3 per cent

2.7 per cent

2.5 per cent

2.4 per cent

Alberta

3.1 per cent

3.2 per cent

3.6 per cent

3.4 per cent

2.9 per cent

Saskatchewan

2.9 per cent

3.4 per cent

3.2 per cent

3.2 per cent

3.3 per cent

Manitoba

2.3 per cent

2.6 per cent

2.7 per cent

2.5 per cent

2.7 per cent

Ontario

2.5 per cent

2.5 per cent

2.7 per cent

2.7 per cent

2.4 per cent

Quebec

2.6 per cent

2.6 per cent

2.7 per cent

2.8 per cent

2.7 per cent

Maritimes

2.1 per cent

2.1 per cent

2.6 per cent

2.4 per cent

2.7 per cent

Newfoundland

2.6 per cent

4.0 per cent

3.4 per cent

3.4 per cent

3.5 per cent

GTA

2.5 per cent

2.5 per cent

2.8 per cent

2.7 per cent

2.5 per cent

Looking at the 2015 projections for major Canadian cities, workers in Calgary (3.2 per cent), St. John's (3.1 per cent) and Saskatoon (three per cent) will see the highest salary increases.

Other findings

• For all organizations, actual base salary changes realized in 2014 were exactly as forecasted at 2.6 per cent.

•Projections by job level show most positions will be at or just above the national average of 2.6 per cent. Only unionized clerical positions will see average increases (2.3 per cent) that are below the national average.

•No change to the Ontario and the GTA projections of 2.5 per cent.

•No change to the Quebec (2.6 per cent) and Maritimes (2.1 per cent) from last year's projections.

•Projections for countries such as United Kingdom (2.5 per cent), Canada (2.6 per cent), U.S. and Australia (three per cent) continue to lag behind those for India (10.7 per cent) and China (8.2 per cent) although the 2015 forecasts for China are lower than the nine per cent made one year ago.